Cipher’s AI subsidiary Black Pearl Compute garners $13 billion offers in $2 billion junk bond sale: report
Cipher's AI unit, Black Pearl Compute, received $13 billion in orders for its $2 billion junk bond sale to fund a Texas data center.Summary
Black Pearl Compute, the AI subsidiary of bitcoin miner Cipher Mining (Nasdaq: CIFR), attracted massive interest for its $2 billion junk bond sale, securing $13 billion in orders. The proceeds will finance the construction of the Black Pearl data center in Texas, which was leased to Amazon Web Services (AWS) for at least 15 years in November for 300 MW of capacity, valued at about $5.5 billion in contracted revenue. This high demand reflects the broader trend of crypto mining firms diversifying into high-performance computing infrastructure. The five-year bonds, priced on Wednesday, will yield 6.125% and will also be used to reimburse Cipher approximately $232.5 million for prior equity contributions to Black Pearl. The senior notes are secured by first-priority liens on substantially all assets of the Issuer and the Guarantors.
(Source：The Block)